I last wrote about Advanced Energy Industries (NASDAQ:AEIS) in September
and said, "I don't think the semi-cap cycle has peaked, so
growth/momentum investors may still find more room to run with Advanced
Energy." The shares have shot up another 60% since then, outperforming
other semiconductor equipment stocks I've liked, including MKS Instruments (NASDAQ:MKSI).
This
performance hasn't been just hype and hope, as Advanced Energy has been
outperforming its own guidance and seeing solid evidence that
opportunities tied to new chip architectures, advanced packaging, and
non-chip markets like OLEDs are converting to actual orders and revenue.
Bulls may argue that these drivers will lead to a substantially greater
addressable market and a longer up-cycle, and I don't necessarily
disagree.
Likewise, Advanced Energy has plenty of
room to grow outside of its core semiconductor market(s). All of that
said, I can't make a quantitative value argument here, so these shares
really only seem appropriate for investors who want to take on the risk
that the good times can still get meaningfully better before valuations
come back to a lower orbit.
Read more here:
The Good Times Get Better For Advanced Energy Industries
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